Daniel Orelowitz | Managing Director | Training Force | mail me |
Skills development is one of the cornerstones of Broad-Based Black Economic Empowerment (B-BBEE) and makes up a significant percentage of the scorecard.
South African businesses need to shift their mindset to see it as more than just a compliance exercise. The goal of B-BBEE is not to stifle businesses but to provide a fair environment for all and uplift previously disadvantaged people to enable them to earn an income and contribute to the country’s Gross Domestic Product (GDP).
Skills development should be seen as an opportunity to grow economic participation, which ultimately will benefit all businesses by bolstering the country’s entire economy.
The foundation of B-BBEE
B-BBEE is a prerequisite for doing business in South Africa, especially when large organisations and government tenders are involved.
The goal is not to create additional hoops for businesses to jump through but to create a fair environment for enterprise. In addition, it provides a competitive advantage to smaller businesses entering the market to stimulate economic growth and job creation. The emphasis on skills development aims to equip South Africans with new skills to allow them to progress and, in turn, succeed and grow business.
While the principles of B-BBEE are sound, the way it has been applied has not created the success required to redress the disadvantages of the country’s historical path. As the economic landscape currently stands, unemployment is a massive problem, and discouraged jobseekers an even larger one. Consequently, it is unsustainable for most South Africans to be inactive in the economy, and we need to address this as a matter of urgency.
Better business for all
Without applying B-BBEE principles, businesses risk cutting themselves off from potential markets – while they may not do business with the government directly, their customers might, and procurement scores have a knock-on effect. Conversely, higher B-BBEE scores can be a competitive advantage.
When faced with the choice of two suppliers, if all other factors are equal, the enterprise with the higher B-BBEE rating will inevitably be awarded the business.
A complex landscape
B-BBEE accreditation requires …
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Read the full article by Daniel Orelowitz, Managing Director, Training Force, as well as a host of other topical management articles written by professionals, consultants and academics in the August/September 2021 edition of BusinessBrief.
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